I have a couple of questions re transfers:
What does it mean in terms of ACH transaction when transfer status is pending or processed?
Is there any way we can track ACH payment processing?
When I initiate a transfer, what happens on the bank side? Does it put an immediate ACH hold on sender’s account for the funds available to transfer?
A pending status includes when the transaction is created in the Dwolla system and when the instructions have been sent to a bank to debit/credit an account. A transaction will stay pending up until it’s expected clearing date.
The best way to track the status of a transaction as it moves through the ACH network is to use webhooks. Dwolla will push you information when the state of the transaction changes.
It’s ultimately up to the individual FI and how they choose to display this information on a user’s bank statement. In most cases, the user should see something on their bank account the following business day if a transaction is created prior to 4pm CT on a given business day.
Thanks@spencer for the explanation. I have some follow up questions
Re pending status: Is there any delay between transaction is created in the Dwolla system and when the instructions have been sent to a bank?
Re Transfer process: Does the user have the ability to cancel the transaction directly from the bank after it creates a transfer on the Dwolla system?
Hi @spencer - Happy new year. I am following up on my last question, let me know if you can help me resolve this. Thanks.
Hi @PriyanshuJain! Sorry, for the late reply!
We begin our ACH export around 4 PM CT every business day. So, for example, if a transfer was created at 10 AM CT on a Sunday (non-business day), the transfer will export at 4 PM on the following Monday.
The user can cancel transfers within the Dwolla up until the export time. This can be determined by checking for the cancel link in a transfer. If the link is present, it means the transfer hasn’t exported yet, and can be cancelled within Dwolla.
As for cancelling via the bank, that depends on the FI whether Users can dispute their transactions with the bank or not. If they do dispute it, then Dwolla receives an ACH return code which we have to honor and mark the transfer as failed.
Here’s a helpful gist by Spencer where he writes about the different transfer scenarios and the webhooks sent for each, including ACH returns and late ACH returns.
Hope that helps! Let us know if you have any questions!
Hi @shreya, Thanks for the response. Can you explain How does this ACH export look like? Does it mean Dwolla sends transactions to NACHA at 4 pm every day? Is there any activity on Sender’s ban account like ACH hold before 4 pm?
Hi @PriyanshuJain! Sure thing!
Yes, Dwolla processes the ACH file at 4pm CT every business day. There is no hold that’s placed on the sender’s account before 4pm. The information is only sent to the bank after the export.